For financial reporting purposes, income from continuing operations before income taxes includes the following components (in thousands):

	2019		2018		2017
United States	$	92,710	$	79,669	$	74,151
Foreign (Canada)		179		171		169
Total	$	92,889	$	79,840	$	74,320

Income tax expense (benefit) included in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2019, 2018 and 2017 was as follows (in thousands):

	2019			2018			2017
Continuing operations :
Current:
Federal	$	12,776		$	12,626		$	21,086
Foreign		48			45			45
State and local		4,110			2,808			2,475
Total		16,934			15,479			23,606
Deferred:
Federal		3,685			2,047			(1,086	)
State and local		1,221			741			768
Total		4,906			2,788			(318	)
Total income tax expense from continuing operations		21,840			18,267			23,288
Discontinued operations :
Operations of discontinued operations:
Current		(107	)		2			(418	)
Deferred		(1	)		(1	)		(19	)
Total income tax expense from discontinued operations		(108	)		1			(437	)
Total income tax expense	$	21,732		$	18,268		$	22,851

The provision for income taxes attributable to income from continuing operations differed from the amount obtained by applying the federal statutory income tax rate to income from continuing operations before income taxes, as follows (in thousands, except percentages):

	2019			2018			2017
Tax at U.S. federal statutory rates	$	19,507		$	16,766		$	26,012
State taxes (net of federal benefit)		4,774			3,745			2,724
Business meals and entertainment — non-deductible		987			915			820
Change in valuation allowance		932			264			221
Reserves for uncertain tax positions		(263	)		(1,124	)		(35	)
Share-based compensation		(4,773	)		(3,260	)		(3,837	)
Impact of the Tax Cuts and Jobs Act of 2017					—			(2,487	)
Non-deductible expenses		713			785			236
Other, net		(37	)		176			(366	)
Provision for income taxes from continuing operations	$	21,840		$	18,267		$	23,288
Effective income tax rate		23.5	%		22.9	%		31.3	%

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018, were as follows (in thousands):

	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	1,594		$	1,091
Allowance for doubtful accounts		3,156			2,902
Employee benefits and compensation		26,442			24,761
Lease costs		4,889			4,099
State tax credit carryforwards		1,322			1,353
Property and equipment					—
Other deferred tax assets		30			287
Total gross deferred tax assets		37,433			34,493
Less: valuation allowance		(2,799	)		(1,840	)
Total deferred tax assets, net		34,634			32,653
Deferred tax liabilities:
Client list intangible assets		846			1,184
Goodwill and other intangibles		42,496			35,840
Property and equipment		2,291			1,356
Other deferred tax liabilities		721			1,037
Total gross deferred tax liabilities		46,354			39,417
Net deferred tax liability	$	(11,720	)	$	(6,764	)

We have established valuation allowances for deferred tax assets related to certain employee benefits and compensation, state net operating loss (“NOL”) carryforwards and state income tax credit carryforwards at December 31, 2019 and December 31, 2018. The net increase in the valuation allowance of $1.0 million for the year ended December 31, 2019 primarily related to changes in the valuation allowance for NOLs.

In assessing the realization of deferred tax assets, management considers all available positive and negative evidence, including projected future taxable income, scheduled reversal of deferred tax liabilities, historical financial operations and tax planning strategies. Based upon review of these items, management believes it is more-likely-than-not that the Company will realize the benefits of these deferred tax assets, net of the existing valuation allowances.

We file income tax returns in the United States, Canada, and most state jurisdictions. With limited exceptions, our state and local income tax returns and non-U.S. income tax returns are no longer subject to tax authority examinations for years ending prior to January 1, 2015 and January 1, 2014, respectively.

The availability of NOLs and state tax credits are reported as deferred tax assets, net of applicable valuation allowances, in the accompanying Consolidated Balance Sheets. At December 31, 2019, we had state net operating loss carryforwards of $39.4 million and state tax credit carryforwards of $1.3 million. The state net operating loss carryforwards expire on various dates between 2020 and 2039 and the state tax credit carryforwards expire on various dates between 2020 and 2029.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2019			2018			2017
Balance at January 1	$	2,819		$	3,882		$	4,090
Additions for tax positions of the current year		145			119			123
Settlements of prior year positions		(282	)		(16	)		—
Lapse of statutes of limitation		(146	)		(1,166	)		(331	)
Balance at December 31	$	2,536		$	2,819		$	3,882

Included in the balance of unrecognized tax benefits at December 31, 2019 are $1.6 million of unrecognized tax benefits that, if recognized, would affect the effective tax rate. We believe it is reasonably possible that certain of these unrecognized tax benefits could change in the next twelve months. We expect reductions in the liability for unrecognized tax benefits of approximately $1.5 million within the next twelve months due to expiration of statutes of limitation. Given the number of years that are currently subject to examination, we are unable to estimate the range of potential adjustments to the remaining balance of unrecognized tax benefits at this time.

We recognize interest expense, and penalties related to unrecognized tax benefits as a component of income tax expense. During 2019, we accrued interest expense of less than $0.1 million and, as of December 31, 2019, had recognized a liability for interest expense and penalties of $0.7 million and $0.2 million, respectively, relating to unrecognized tax benefits. During 2018, we accrued interest expense of less than $0.1 million and, as of December 31, 2018, had recognized a liability for interest expense and penalties of $0.7 million and $0.2 million, respectively, relating to unrecognized tax benefits.